Activision Blizzard has agreed to a $54 million settlement to resolve an employee discrimination lawsuit.
What kind of lawsuit is this? In 2021, the US California Civil Rights Department (CRD for short) filed a lawsuit against Activision Blizzard.
The background to the lawsuit are various allegations that Activision Blizzard treated employees discriminatoryly and unequally. Women were paid less for the same jobs, the top positions in the company went predominantly to white men and women were sexually harassed.
The lawsuit consists of 29 pages and was filed on July 20, 2021 in the “Superior Court of the State of California, in and for the County of Los Angeles” (via aboutlaw).
The agency is committed to upholding civil rights and, among other things, its mission is to protect California residents from discrimination in the workplace.
Activision Blizzard agrees to settlement agreement
Why is the company now paying $54 million? As the Civil Rights Department announced in a press release on December 15, the agency has reached a settlement agreement with Activision Blizzard (via calcivilrights.ca.gov).
The authority’s statement says:
The California Civil Rights Department (CRD) today announced that it has entered into an approximately $54 million settlement agreement to resolve allegations that Activision Blizzard, Inc., Blizzard Entertainment, Inc. and Activision Publishing, Inc . (Activision Blizzard) discriminated against women in the company, including by denying them promotion opportunities and receiving less pay than men for essentially the same work.
The CRD in the press release dated December 15, 2023 via calcivilrights.ca.gov
Activision Blizzard will pay approximately $54,875,000 to cover direct workers’ compensation payments and litigation costs, according to the CRD. Of the total amount, approximately $45,750,000 will then flow into a settlement fund intended for workers’ compensation.
Accordingly, women who worked as employees or contract workers for Activision Blizzard in California between October 12, 2015 and December 31, 2020 may be entitled to compensation.
Does the comparison have any further implications? Yes, if the court approves the settlement, according to the CRD, Activision Blizzard would also be required to hire an independent expert to evaluate and make recommendations on Activision Blizzard’s “compensation and promotion policies and training materials.”
Likewise, Activision Blizzard must continue to make efforts to include qualified candidates from underrepresented communities in recruiting, hiring and retention.
Kotick denied that Activision Blizzard had a sexism problem
It was only at the end of March 2023 that Activision CEO Bobby Kotick denied that Activision Blizzard had a sexism problem. They conducted investigations and never had a systemic problem with harassment, Kotick said in an interview with Variety.
But in February 2023, Activision Blizzard had to pay a fine of $35 million after an investigation by the US Security and Exchange Commission (SEC for short) revealed that Activision Blizzard had violated several laws and rules.
You can read more about the fine on MeinMMO: After sexism scandal: Activision Blizzard pays $35 million fine